Broadband Internet for all Europeans:
Commission launches debate on future of universal service

How can the EU achieve that all Europeans –
from the North of Finland to the South of Italy, from the Western Ireland to
Eastern Romania – have access to broadband Internet? This is the main
question raised in a Commission report today. From 2003-2007 broadband use in
the EU tripled to 36% of households. However, 7% of the EU's population are
still not connected (30% in rural areas). There are striking gaps in the EU:
100% of the population is covered in Denmark, Luxembourg and Belgium, but more
than 60% in Romania (75% in rural areas) do not have broadband access. Even in
strong economies such as Italy and Germany, 18% and 12% respectively of the
rural population are not covered. With broadband increasingly important in daily
life, policy tools like radio spectrum management and mobile satellite services
should accompany a broad debate about the universal service in telecoms –
a safety net guaranteeing a minimum level of services, such as connection to a
phone network and basic Internet access, filling basic needs that the market
does not.

"High-speed Internet is the passport to the Information Society and an
essential condition for economic growth. This is why it is this Commission's
policy to make broadband Internet for all Europeans happen by 2010", said EU
Telecoms Commissioner Viviane Reding. "A lot has been achieved over the past
four years, and new tools, such as Satellite Broadband, are well on track. It is
also good news that the 8 best EU countries far outperform the US in broadband
take up. But take up requires access, and is not there in parts of the EU. We
need to combine all efforts to make sure that all citizens can get connected
soon."

The Commission today published a report showing that competitive markets for
broadband Internet are providing EU citizens widespread and affordable access.
However, further efforts are needed to ensure Broadband for All. So far, the EU
has stimulated broadband with the following 3 tools:

(1) Telecoms rules for more competition and investment. Europe has almost
100 million broadband lines in January 2008 and a growth rate of 20%, with
52,000 new lines connected daily in 2007 (IP/08/460).
Last week, the Commission published further regulatory guidance on ensuring
competition and investment for optical fibre networks (IP/08/1370).

(2) A new system to stimulate mobile satellite services, which can deliver
broadband via satellite across the EU, was set up this summer. The European
Parliament and the Council created a one-stop shop for authorising such
services: instead of 27 procedures, mobile satellite operators now apply to the
Commission (IP/08/1250).

(3) In November 2007, the Commission made proposals for reform of radio
spectrum management to free resources for new wireless services (IP/07/1677),
which were mostly endorsed by the European Parliament on 24 September (MEMO/08/581).
If the Council also accept this new form of spectrum management, the Digital
Dividend – extra radio spectrum available after the move from analogue to
digital TV – can be used for new wireless broadband services, and not just
new TV channels.

Today's Commission report asks if these measures are enough or should a new
universal service obligation be considered.

The report also shows strong growth in the number of Europeans using a
mobile phone. Since the present Commission took office, the level of mobile
subscriptions has grown from 85% to 112%. "These figures are an important
vote of confidence of mobile consumers in the health of Europe's mobile
sector", says EU Commissioner Viviane Reding. "They show that at present,
there is no need to impose universal service obligations on mobile operators
– even though at least some of their lobbyists try to make us believe the
contrary these days."

Background:

Under the EU’s Universal
Service Directive of 2002, universal service means that citizens must be
able to connect to the public phone network at a fixed location and access
public phone services for voice and data communications with functional access
to the Internet. The Directive also requires that consumers have access to
directory enquiry services and directories, public payphones and special
measures if they are disabled. The Commission reviews the scope of the Universal
Service Directive every 3 years (IP/05/594,
IP/06/488).
Today's report invites Parliament, Council, national regulators, telecoms
providers, consumer associations and citizens to contribute to a debate on
achieving Broadband for All in the EU. These contributions will feed into a
Commission Communication in the second half of 2009 and possibly legislative
proposals in 2010.

The European Parliament yesterday voted in favour of Commission proposals to
strengthen other users' rights ensured by the Directive: the efficiency of the
single European emergency number 112, especially for people with disabilities;
and the right to change a fixed or mobile operator within 1 day while keeping
one's phone number.